Home ownership schemes
There are a number of different schemes available that can
provide you with help to buy a house.
Some schemes are property specific (linked to a particular
development), whilst others allow you to buy a property on
the open market.
New Build Homebuy
New Build Homebuy (formerly
called 'Shared Ownership') can help you to buy a property
you couldn't ordinarily afford if you were to try and buy
it outright.
This type of scheme allows you to purchase a
share of a property from a social landlord, usually a housing
association. The share you purchase is funded by a mortgage,
which you will need to arrange with a bank or building society. The
remaining share you do not own and is rented from the social
landlord.
The size of the share you purchase will depend on your income
and savings. Normally applicants buy a 50% share but you may
purchase a smaller or larger share. In some instances you can buy
as little as 25% or as much as 80%.
The larger the share you purchase the less rent you will
have to pay. Later on, if you wish and can afford to do so, you can
buy a further share.
The Council works with Housing Associations to try and develop
'New Build Homebuy' affordable housing. New schemes are
advertised on our affordable housing pages and on the
Plumlife website (external link)
website. Housing Associations will also advertise their own
schemes.
Existing schemes are often sold through estate agents in the
usual way. These are properties where the existing homeowner wishes
to sell their share of the home. If you are interested in existing
schemes you should register with estate agents.
Equity Loan Schemes
If you are struggling to afford to buy a home
on the open market, then an equity loan might be worth
considering.
These schemes can provide you with a 'top up'
to the normal mortgage in the form of a lump sum - known as an
equity loan - to enable you to reach the purchase price.
This could either be a fixed sum or a
percentage of the property you are buying. As an example, if a
property was valued at £120,000 you could receive 25% of this sum
(an equity loan of £30,000) to assist you in buying the property.
You would then have to raise a mortgage of £90,000.
Some equity loans will provide up 40% of the
value of the house.
Don’t forget to obtain independent financial
advice when considering any product. Two local equity loan
schemes are 'Open Market
Homebuy' (external link) operated by Plumlife and 'Ownhome' (external
link) operated by Places for People. Both schemes are
backed by the Government and regulated through the Financial
Services Authority.
Contact
Related information